UBA in early lead, now in the process of final integrations to start off transactions on PAPSS with a target to have Nigeria and Ghana running in Q4
Evans EDEBOR
| Evangelist | International Market | Trade Policy | Development | Finance | Women, Youths & SMEs Mentor | AfCFTA Media Fellow | SDGs Volunteer
A brain brainchild of Afreximbank and proudly supported by the African Union African Continental Free Trade Area (AfCFTA) Secretariat, PAPSS is a Pan-African Payment & Settlement infrastructure that enables instant payments across African borders in local currency!
There are over 42 currencies in Africa, the new PAPSS approach allows a customer in one African country to pay in their own currency, while a seller in another country receives payment in their own currency.
With PAPSS, Africans will no longer need to convert local currencies into hard currencies which then entailed the funds leaving Africa to be converted before being sent back again to the beneficiary bank – adding days to the transaction time
More than that, horrible experiences like, " I paid an extra $165 ( $30 as transfer fee, $35 as SWIFT charges and another $100 bank charges ) on top of a $10,000 bank transfer to the seller on orders within Africa is over.
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According to Benedict Oramah, President of the African Export-Import Bank, (Afreximbank), in a recent interview with Africa Renewal, ‘’a cumbersome and time-consuming process costs us [Africans] about $5 billion in [money transfer] charges each year.” Worst still, is the fact that included in this whopping sum are would-be -profits accruable to African Businesses, SMEs & Entrepreneurs, but are filtering away through Bank Charges, Exchange Rates & Transfer Fees amongst others.
At last, there is a sigh of relief that is exploitation is coming to an end soon as The United Bank for Africa Plc. (UBA) will soon start cross-border transactions with PAPSS in the fourth quarter of 2022. The target is to have Nigeria and Ghana running in Q4 – i.e., between next month and December, and then, the other four countries – Liberia, Sierra Leone, Gambia and Kenya in Q1, 2023 amongst others!
Join our next capacity building and Information Session – a Zoom Webinar to be amongst the first to learn more about how PAPSS work and how you can leverage to increase your profitability and save cost amongst other opportunities it provide.